Kroger and Albertsons plan to sell 18 grocery stores in Alaska, including Juneau’s Safeway in the Mendenhall Valley, as part of the plan to merge the two grocery giants.
The CEOs of Kroger and Albertsons shared a joint video statement following the announcement. Albertsons CEO Vivek Sankaran said the sales will help keep prices low and give more options to shoppers.
“This merger is the right thing for our customers and our associates,” he said. “For our customers, we strengthen the American retail landscape and thoughtfully selected stores to ensure customers continue to have a choice of where to shop.”
A list released on Tuesday includes Carrs, Eagle and Safeway stores across Alaska — and more than 550 other stores across the U.S.
The merger plan still needs to be approved by regulators. But, if that happens, the 579 stores on the list will be transferred to C&S Wholesale Grocers, LLC. C&S operates grocery stores across the country, including Piggly Wiggly, and is the nation’s largest wholesale grocery supplier.
Kroger CEO Rodney McMullen said the list is a significant step toward completing the merger.
“Divested stores are not closed stores,” he said. “C&S is committed to operating these stores as they are today.”
Despite the excitement expressed by the CEOs, the plan has seen a lot of pushback since it was announced in the fall of 2022.
Local municipalities, state lawmakers and Alaska’s U.S. delegation have called to block the merger, arguing it could cause more food insecurity in rural places in Alaska, drive up prices and limit options.
And the Federal Trade Commission and attorneys general in states like Washington, Illinois and California have filed suits to stop the merger.
In a statement, Rep. Mary Peltola said she would “continue to support the FTC’s efforts to block this merger.”
If the merger is approved, the divestiture of the stores will be roughly $3 billion. The companies say there are no plans to lay off employees at the stores.
